PBOC expands SLF to ease liquidity

BEIJING — China’s central bank will expand its standing lending facility (SLF), a liquidity support tool, to cover small and medium-sized banks nationwide in its latest effort to ensure money supply.

The People’s Bank of China (PBOC) announced on Feb 11 that branches across the country will be authorized to conduct SLF for small financial institutions after the success of a 10 region pilot that has lasted for over a year.

The PBOC said the move would address liquidity fluctuation before the Lunar New Year holiday and help stabilize the country’s money market.